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Tax toggle - Treat staking deposits and withdrawals as non-taxable
Tax toggle - Treat staking deposits and withdrawals as non-taxable
Layla Huang avatar
Written by Layla Huang
Updated over a week ago

You can find this toggle under Settings -> Portfolio & Tax section. Switching this toggle might change the results of your Capital Gains Report. The default setting depends on your tax jurisdiction. The choice of settings may impact your tax liability, so it's essential to consult with your accountant or local tax professionals about your situation before making any changes.

Toggle on

When the toggle is switched on, all your staking deposits and withdrawals are treated as non-taxable transfers. These transactions do not change your overall account balance and there are no capital gains or losses. See the example below:

Date

Category

Asset

Market price

Cost base

Capital gains

Overall balance

Jan. 1, 2022

Buy

1 ETH

$4,000

$4,000

-

1 ETH

Feb. 1, 2022

Staking deposit

1 ETH

$3,000

$4,000

-

1 ETH

Mar. 1, 2022

Staking withdrawal

1 ETH

$2,500

$4,000

-

1 ETH

Apr. 1, 2022

Sell

1 ETH

$3,500

$4,000

($500)

0 ETH

Toggle off

When the toggle is switched off, all your staking deposits and withdrawals are treated as taxable disposals and acquisitions. The capital gains/losses are realized in the transaction. See the example below:

Date

Category

Asset

Market price

Cost base

Capital gains

Overall balance

Jan. 1, 2022

Buy

1 ETH

$4,000

$4,000

-

1 ETH

Feb. 1, 2022

Staking deposit

1 ETH

$3,000

$4,000

($1,000)

0 ETH

Mar. 1, 2022

Staking withdrawal

1 ETH

$2,500

$2,500

-

1 ETH

Apr. 1, 2022

Sell

1 ETH

$3,500

$2,500

$1,000

0 ETH

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